Kim's Exit Fuels Hopes for Softer Crypto Regulations in Korea
Kim Yong-beom's sudden resignation as presidential chief of staff for policy has sparked hope among Korea's cryptocurrency industry that regulatory relief is on the horizon.
The proposed equity cap, which would force major shareholders to sell their excess stakes, was a contentious issue during Kim's tenure. Industry officials have been fiercely opposed to the measure, arguing it would undermine property rights and hamper investment.
Kim, a former senior financial bureaucrat who headed the crypto think tank Hashed Open Research, initially promised pro-industry regulations upon taking office in June 2025. However, his tenure saw a push for stricter controls, including capping major exchange shareholders' equity at 20 percent.
The industry has welcomed Kim's departure, hoping it will signal a shift towards less restrictive regulations in the government's digital asset bill. As the Financial Services Commission finalizes the Digital Asset Basic Act this month, officials are considering compromise measures that would limit voting rights rather than require major shareholders to sell their stakes.